Interactive Development Between Producer Services And Manufacturing Industry In Shandong Province

Experience of advanced industrialized countries shows that service industries are the important source of economic growth and efficiency improvement. The level of producer services which provide intermediate inputs and intensive in knowledge and technology has been an important symbol of modern economic development. Great role has also been played in promoting industrial structure reform, enhancing the competitiveness and technological innovation of enterprises. Born in manufacturing, producer services are the important performance of specialization and industrial structure optimization. Economy development dominating by services will be the target of industrial structure adjustment. Combination in industrial chain by manufacturing and producer services, production process remolding by professional services such as technology, management and innovation are effective way to stretch to the high end of value chain and improve the production efficiency of manufacturing industry.Economic structure adjustment and industrial upgrading are the core problems facing in the development of Shandong province. With the low step in structure adjustment, manufacturing has been the main pillar of economic development in Shandong province. Problems hindering economic development include inner structure unreasonable, inadequate in high-end industries and the plight of efficiency improvement. Lagging of producer services is the immediate cause in the backward development of the tertiary industry in Shandong province. Important issues are in great need to be solved in searching for the new power of manufacturing efficiency improvement and realizing the optimization and upgrading of industrial structure.First of all, based on the research review of scholars both at home and abroad, this article explains the interaction mechanism between producer services and manufacturing industry with diverse perspective from industrial structure evolution, industrial division, value chain, industrial distribution and factor mobility. Research is conducted from level of whole industry, different type of manufacturing industry and sub-sectors in Input-Output analyses to observe the interactive demand and ripple effect between producer services and manufacturing industry of Shandong province, exploring the role, position and direction in future development. Industry situation and problems are revealed by analysis of the macro data. Panel data models are used to take empirical test on the effect of manufacturing industry to producer services as well as the effect of producer services to manufacturing industry labor productivity. Finally, combining with the actual situation of economic development in Shandong province, industrial policy guidance and key industries construction are discussed in order to promote industry interaction effectively.